Deductions from

Gross Total Income

Deductions from your gross total income are the various allowances and
exclusions that can be subtracted from your total income to arrive at your
taxable income. These deductions help lower the amount of income that is
subject to taxation.

by Khushi Singh
Standard Deductions
Fixed Amount
The standard deduction is a
fixed, predetermined amount
that you can deduct from your
taxable income, regardless of
your specific expenses.
Simplifies Filing
The standard deduction allows
many taxpayers to file their
returns more easily, without
having to itemize each
individual deduction.
Increased Annually
The standard deduction
amount is usually increased
each year to account for
inflation and changes in the
cost of living.
Itemized Deductions
1 Specific Expenses
Itemized deductions allow you to
deduct certain qualified expenses,
such as mortgage interest, charitable
contributions, and medical costs.
2 Higher Deductions
Itemizing your deductions can often
result in a higher overall deduction
compared to taking the standard
deduction.

3 Documentation Required
Itemized deductions require detailed record-keeping and documentation to
substantiate the claimed expenses.
Adjustments to Income
Above-the-Line Deductions
Adjustments to income, also known as
"above-the-line" deductions, can be
claimed regardless of whether you
itemize or take the standard deduction.
Reduce Taxable Income
Adjustments to income, such as
contributions to retirement accounts or
student loan interest, directly reduce
your taxable income.

Eligibility Requirements
Each adjustment to income has specific eligibility requirements and limitations, so it's
important to understand the rules.
Calculating Taxable Income
Gross Total Income
1 Start with your total income from all sources, including wages, interest,
dividends, and other sources.

Deductions and Adjustments

2 Subtract your deductions and adjustments to arrive at your taxable income.

Taxable Income
3 The remaining amount is your taxable income, which will be used to calculate
your final tax liability.